Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2010 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (1) TMI 618 - KERALA HIGH COURTExport- Computation - deduction of export profit u/s 80HHC(3)- - The assessee has local sales as well as export sales - the Assessing Officer noticed that business profit arrived at by the assessee includes income from sale of scrap and insurance claim received which according to the Assessing Officer falls under "any other receipt of similar nature" requiring exclusion of 90 per cent. thereof by virtue of Explanation (baa)(i) to section 80HHC - As regards of sale of scrap, the assessee contended that there is no finding by any other authorities in this regard, hence, it is treated as a part of business income. Regards insurance claim - there is no discussion as to the nature of insurance claim received by the assessee in the orders of any of the authorities below - Prima facie it falls under the Explanation clause - If the claim received is on account of loss of goods which form part of the total turnover then it has to be treated as business profit and the corresponding turnover will form part of the total turnover in the computation of export profit for deduction - Hence, the Assessing Officer should re-examine the matter after verifying the facts.
|